Formula

You can use complex formulas built with Business Formula to calculate different elements of banking products, such as commissions, or to determine the eligibility of a customer. To use formulas in conjunction with a banking product, creating banking product formula records and then associate them with the desired product. You can do so either from the product level, within the Product Formula Engine tab, or from the Formula dedicated menu.

NOTE  
Banking formulas, once included in the product definition, have to be fed with data at the customer journey level. The calculated result is later consumed within customer journeys; the resulting applicable rate can be fed into contract creation.

Loan Management can also consume banking formulas included in the product definition. For example, if you have a penalty interest rate calculated with a formula that uses current applicable interest rate plus 2% and you change the interest rate on the contract, then the applicable penalty interest rate is automatically updated to the new current interest's value plus 2%.

Follow these steps to manage banking product formulas using the dedicated menu available in Banking Product Factory:

  1. In the main menu, click Product Factory > Banking Product Dictionaries > Formula, and the Banking Product Formulas list page opens.

  2. On the Banking Product Formulas list page, you can view the name and type of a banking formula, as well at the associated banking product and its version. Here you can also add new banking product formula records or search, edit, and delete existing ones.

NOTE  
You can insert, update, or delete banking product formula records if you have the associated role of Banking Product Admin.
NOTE  
To learn how to create a simulation for a repayment schedule for a banking product with a commission based on a business formula, read this topic.

Creating Banking Product Formulas

To create a new banking product formula, follow these steps:

  1. Click Insert on the Banking Product Formulas list page to open the Add Banking Product Formula page.

  1. Fill in the following fields:

    • Name: Enter an appropriate name.

    • Formula Type: Select the type of formula configured before, e.g. scoring /eligibility.

    • Formula: Select the previously configured formula.

      The example below represents the ReturnCommissionFormula, used for calculating the commission for a return of amount or goods transaction:

      IMPORTANT!  The formula must be activated before attaching it to a product.

    • Data Mapping: Select the previously configured data mapping.

      The name of the banking product is inserted automatically in Banking Product.

  2. After selecting the desired formula, click Save and reload, then click the Map Data button.

    The example below represents the mapping for a demo formula for the calculation of return commissions:

  3. In the Formula Mapping page, click Input and configure the input data for the formula. For information on how to build a formula, see Define Formula Inputs.

    The example below represents the input data of the mapping for a demo formula for the calculation of return commissions:

  4. Click Output and configure the output for the formula.

    The example below represents the output data of the mapping for a demo formula for the calculation of return commissions. As the result is used within a job and not saved in the master entity's fields, there is no mapping defined:

  5. Click the Save and Close button.